A Review of the Nigerian Energy Industry

NCDMB concludes categorization, audit on local marines firms

Toju Vincent

Ernest Nwapa22 October 2013, Sweetcrude, Lagos – THE Nigerian Content Development and Monitoring Board, NCDMB, has concluded the categorization and audit exercise on indigenous marine firms to ensure that they get first consideration in the award of contracts in the oil and gas industry.

In a marine vessel categorization procedure, the Board categorize indigenous marine firms into about five categories ‘A ‘ to ‘E’ just as it has concluded plans to publish the report of the categorization exercise on a quarterly basis.

The marine vessels categorization of marine vessels provides the opportunity for service vendor to attain higher categorization upon progression in ownership plan and service providers that fail to maintain their current ownership profile or commitments to acquire a vessel would be downgraded to a lower category.

The Board also warned that any marine firm that provide false information to win a bid will be dropped from the tender process and sanctioned in accordance with the extant laws of Nigeria.

In the report, app vendors in category ‘A’ are prequalified to proceed to the technical stage of the contracting process and must be given first consideration in all tenders for all types of vessels.

Some of the criteria the Board used in its categorization process include corporate status of vessel owner, place of manufacture, build of vessel or component of vessel.

Other factors considered by the Board were evidence of Customs duty payment, provisions of insurance and a letter from a Nigerian bank confirming the company’s receivables from marine vessel transaction and vessel ownership record, and NIMASA’s vessel registration certificate.

From the report of the categorization, category ‘A’ are Nigerian companies having marine vessels ownership status as defined in vessel ownership requirement, while category ‘B’ are Nigerian firms that are into long term bare boat lease of foreign owned vessels wherein the company provides the manning for the leased vessel.

Category ‘C’ and ‘D’ are for new entrants and foreign companies operating in Nigeria respectively.

While the new entrants must show evidence of plan to build or acquire, the foreign operator must also show evidence of no lease arrangement with any Nigerian entity.

Category “E’ is for Nigerian/foreign partnership.

Part of the report reads: “Under the scheme, Nigerian marine vessels and those built in Nigeria are prequalified to participate in tenders based on a set of criteria by the Board, thereby reducing the long period hitherto taken to pre-qualify vendors.

“This is in line with government and industry aspiration to shorten the cycle for contract award in the oil and gas industry”.

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